2024 Wisconsin Form PW-1 Instructions 

Table of Contents 
General Instructions for Form PW-1 ........................................................................................... 1 
 Purpose of Form PW-1 ........................................................................................................... 1 
 Definitions .............................................................................................................................. 1 
 Who Must File Form PW-1? ................................................................................................... 2 
 Withholding Exemptions ......................................................................................................... 2 
 Filing Deadlines and Period Covered by Return ..................................................................... 3 
 Methods of Filing and Payment .............................................................................................. 4 
Specific Instructions for Form PW-1 ........................................................................................... 4 
 Taxable Year .......................................................................................................................... 4 
 Amended Return .................................................................................................................... 4 
 Final Return ............................................................................................................................ 5 
 Instructions for Part 1 Through Item E .................................................................................... 5 
 Instructions for Part 2 ............................................................................................................. 6 
 Instructions for Part 1, Lines 1 Through 13 ............................................................................. 9 
 Instructions for Part 1A (Additional Information Required for Tiered Entities) .........................11 
 Instructions for Signatures and Information Reporting ...........................................................11 
For Further Assistance ..............................................................................................................12 
 
General Instructions for Form PW-1 
 
Purpose of Form PW-1 
 
According to sec. 71.775, Wis. Stats., during the period of time an owner (e.g., partner, member, 
shareholder, or beneficiary) is considered a nonresident of Wisconsin, a pass-through entity is 
required to withhold income or franchise tax on Wisconsin income that is allocable to that owner. 
Use Form PW-1 to compute the pass-through entity’s withholding tax liability for the taxable year. 
 
Definitions 
 
 •  A “nonresident” is an individual who is not domiciled in Wisconsin; a partnership, limited 
  liability company, or corporation whose commercial domicile is outside the state; or an 
  estate or trust that is a nonresident under sec. 71.14(1) to (3m), Wis. Stats. 
 •  A  “pass-through  entity”  is  a  partnership,  a  limited  liability  company,  a  tax-option  (S) 
  corporation, an estate, or a trust that is treated as a pass-through entity for federal income 
  tax purposes. 
 •  An "owner" is a partner, member, shareholder, or beneficiary of a pass-through entity. 
 •  A "lower-tier entity" is a pass-through entity that is directly or indirectly owned by another 
  pass-through entity. For example, if Partnership A and Partnership B are both partners of 
  Partnership C, then Partnership C is a lower-tier entity and Partnerships A and B are 
  "upper-tier entities". 
 
IC-104 (R. 7-24) 
 

             2024 Wisconsin Form PW-1 Instructions 

Who Must File Form PW-1? 
 
The following pass-through entities are required to file Form PW-1: 
 
 •  Every  pass-through  entity  that  does  business  in  Wisconsin  or  derives  income  from 
   property located in Wisconsin and has one or more nonresident owners. 
 •  Every pass-through entity that receives withholding from a lower-tier entity. Note: Both the 
   lower-tier entity and the upper-tier entity must file Form PW-1. 
 •  Every pass-through entity that reports withholding for any owner on Schedule 5K-1, 3K-1, 
   or 2K-1. 
 
However, the following pass-through entities are not required to file Form PW-1 provided they do 
not report any amount of withholding to any of their owners on Schedule 5K-1, 3K-1, or 2K-1: 
 
 •  A  tax-option  (S)  corporation  or  limited  liability  company  treated  as  a  tax-option  (S) 
   corporation that made an election to be taxed at the entity level under sec. 71.365(4m)(a), 
   Wis. Stats. 
   See Item B for more information. 
 •  A partnership or limited liability company treated as a partnership that made an election 
   to be taxed at the entity level under sec. 71.21(6)(a), Wis. Stats. 
   See Item B for more information. 
 •  A  pass-through  entity  for  which  all  nonresident  owners  are  exempt  from  withholding 
   because each nonresident owner is exempt from income and franchise taxation or has 
   less than $2,000 of income allocable from the entity. Exception: If the pass-through entity 
   received withholding from a lower-tier entity, it is required to file Form PW-1. 
 •  A joint venture that has elected not to be treated as a partnership under sec. 761 of the 
   Internal Revenue Code (IRC). 
 •  A publicly traded partnership, as defined under sec. 7704(b), IRC, if the partnership files 
   Schedule 3K-1 for each nonresident partner. 
 
Even if a pass-through entity is not required to file Form PW-1, the pass-through entity should file 
Form PW-1 to get a refund if: 
 
 •  The pass-through entity has estimated payments or lower-tier withholding that was not 
   claimed on the pass-through entity's Wisconsin franchise or income tax return (Form 5S, 
   3, or 2), or 
 •  The pass-through entity has tax withheld on its behalf by WT-11 filers that was not claimed 
   on the pass-through entity's Wisconsin franchise or income tax return (Form 5S, 3, or 2). 
    
Withholding Exemptions 
 
Certain nonresident owners may not be subject to withholding. Withholding is not required for a 
nonresident owner if one of the following applies to the nonresident owner: 
 
 • Nonresident  Owner  Is  Otherwise  Not  Subject  to  Income  or  Franchise  Tax.           
   Withholding is not required on behalf of an owner who is not otherwise subject to income 

                                    2 
 

             2024 Wisconsin Form PW-1 Instructions 

      or  franchise tax (such  as  a  501(c)(3)  organization  with  no  unrelated  business  taxable 
      income). To claim this exemption, obtain a written statement from the owner which states 
      why the owner is exempt. The pass-through entity must attach this statement to the pass-
      through entity's income or franchise tax return (Form 5S, 3, or 2) for the year. 
 •    Nonresident Owner’s Share of Pass-Through Income Less Than $2,000. Withholding 
      is not required if the owner’s share of income from the pass-through entity attributable to 
      Wisconsin is less than $2,000. For purposes of this exemption, the $2,000 threshold is 
      computed as the Wisconsin taxable income of the pass-through entity reportable to that 
      owner for the taxable year, without regard to carryforwards of prior year losses. 
 •    Nonresident Owner  Files Affidavit to Elect Out of Withholding. Withholding is not 
      required  if  the  owner  files  an  affidavit  with  the  department,  in  the  form  and  manner 
      prescribed by the department. To be eligible for this exemption, the owner must file Form 
      PW-2, Wisconsin  Nonresident  Partner,  Member,  Shareholder  or  Beneficiary  Pass-
      Through  Withholding  Exemption  Affidavit.  The  department  will  mail  the  approved 
      withholding exemption letter or the denial letter to the owner. 
      To qualify for the withholding exemption, the owner must provide a copy of the department 
      issued  exemption  letter  to  the  pass-through  entity,  and  the  pass-through  entity  must 
      maintain a copy in its records to substantiate the withholding exemption. See the Form 
      PW-2 instructions for further details. 
 •    Nonresident Owner Receives a Continuous PW-2 Exemption from the Department 
      of Revenue. Withholding is not required if the owner receives a continuous exemption 
      letter from the department. Upon receiving an approved continuous exemption letter, the 
      owner provides a copy to the pass-through entity and the pass-through entity is relieved 
      of withholding on behalf of the owner. 
 
Note: If any owner is exempt from withholding but the pass-through entity voluntarily withholds 
on behalf of the owner, the pass-through entity is required to report the owner and withholding on 
Form PW-1. 
 
Filing Deadlines and Period Covered by Return 
 
 •  For tax-option (S) corporations and limited liability companies treated as tax-option (S) 
      corporations: the filing deadline for Form PW-1 is the 15th day of the 3rd month following 
      the close of the entity’s taxable year. 
 •  For partnerships and limited liability companies treated as partnerships: the filing deadline 
      for Form PW-1 is the 15th day of the 3rd month following the close of the entity’s taxable 
      year. 
 •  For estates and trusts: the filing deadline for Form PW-1 is the 15th day of the 4th month 
      following the close of the entity's taxable year. 
 
Wisconsin statutes provide for an automatic 7-month extension to file the Form PW-1. If tax is 
due, interest will be assessed on the tax due during the extension period. 
 
The  return  must  cover  the  same  period  as  the  pass-through  entity’s  Wisconsin  income  or 
franchise tax return. File a 2024 Form PW-1 for calendar year 2024 or for a fiscal year that begins 
in 2024. 
 
                                              3 
 

                  2024 Wisconsin Form PW-1 Instructions 

Disaster Relief Extension. If you are filing under extension because of a federal or state disaster, 
include a statement indicating which disaster extension you are using and attach it to your return. 
Additional information on disaster areas can be found here: Disaster Tax Assistance. 
 
Methods of Filing and Payment 
 
You must file Form PW-1 electronically. If withholding tax is due, the payment must also be made 
electronically.  
 
Federal/State E-Filing Program. To file through the federal/state e-filing program, you will need 
approved vendor software. A list of approved vendors is on the department’s website. Using this  
software, you can electronically file Form PW-1 as a separate submission or together with other  
Wisconsin or federal returns. 
 
For more information on federal/state electronic filing, see Wisconsin Electronic Filing Program 
Information for Tax Professionals. 
 
My  Tax  Account. Wisconsin  electronic  filing  is  offered  by  the  department  at  no  cost  and  is 
available 24 hours a day, seven days a week. To use this option, go to the department’s My Tax 
Account webpage. 
 
See the department's Make a Payment webpage for information about making payments. 
 
Electronic  Filing  and  Payment  Waiver.  If  electronic  filing  or  payment  presents  an  undue 
hardship, the pass-through entity may request a waiver from the department to file or pay by non-
electronic means. 
 
To  request  a  waiver,  fill  out Form  EFT-102, Electronic  Filing  or  Electronic  Payment  Waiver 
Request. If approved, you will receive the waiver within a few business days. Then, you may: 
 
 •  Mail return to:  
  Wisconsin Department of Revenue  
  PO Box 8965  
  Madison WI 53708-8965 
 •  Use Form PW-ES to submit estimated payments. Enclose a check for the appropriate 
  amount with Form PW-ES, and mail to the address shown on the form. 
 
Specific Instructions for Form PW-1 
 
Taxable Year 
 
At the top of page 1, enter the beginning and ending dates of the pass-through entity's taxable 
year. A pass-through entity that files a calendar year return should leave these lines blank. 
 
Amended Return 
 
Check the space provided if you are amending a 2024 Form PW-1 that you previously filed. Be 
sure to include Schedule AR explaining in detail the reason for the amended return. 
 
                                                  4 
 

              2024 Wisconsin Form PW-1 Instructions 

Caution: If you are amending Form PW-1 to decrease the withholding tax previously paid on 
behalf  of  your  owners  and  one  or  more  of  your  owners  has  claimed  the  higher  amount  of 
withholding, the department may adjust your return based on information that is available. Instead 
of amending your Form PW-1 to reduce your  pass-through withholding tax, you may wish to 
consider  having  your  owners  amend  their  returns  to  claim  any  additional  refundable  or 
nonrefundable credits, reduce their income, etc., while using the original amount of withholding. 
 
Final Return 
 
Check the space provided if this return is your final return. 
 
Instructions for Part 1 Through Item E 
 
Fill in the name and telephone number of the person with authority to discuss this return with the 
department. 
 
Fill in the pass-through entity’s identifying information as indicated. The name and address should 
be written on single lines. Do not stack the information on the lines. If the name or address is 
longer than the allowable space, abbreviate some of the words. 
 
Item A. Income or Franchise Tax Form Number. Check the space corresponding to the income 
or franchise tax form that the pass-through entity filed or will file for the taxable year: 
 
 •  Tax-option  (S)  corporations  and  limited  liability  companies  treated  as  tax-option  (S) 
  corporations: Check Form 5S 
 •  Partnerships and limited liability companies treated as partnerships: Check Form 3 
 •  Estates and trusts: Check Form 2 
 
Item B. Election to Pay Tax at the Entity Level. Check the space next to Item B if you make an 
election to pay tax at the entity level under sec. 71.365(4m)(a) or sec. 71.21(6)(a), Wis. Stats. 
 
If you do not make this election, continue to Item C.  
 
If you make this election and do not report any amount of withholding to any of your shareholders 
or  partners  on  Wisconsin  Schedule  5K-1  or  3K-1,  you  are  not  required  to  file  Form  PW-1. 
However, you should file Form PW-1 to get a refund if: 
 
 •  You have estimated payments that are not claimed on your Wisconsin franchise or income 
  tax return (Form 5S or Form 3).  
  Note:  If  you  wish  to  have  any  of  your  estimated  payments  from  the  pass-through 
  withholding  account  applied  to  the  entity-level  tax  account,  you  must  submit  a  written 
  request to the department through email to     dorincomepte@wisconsin.gov. The request 
  must be submitted before you file your Form PW-1 return. 
 •  You have lower-tier withholding that is not claimed on your Wisconsin franchise or income 
  tax return (Form 5S or Form 3). 
  Note: Pass-through entities that make an election to pay tax at the entity level can claim 
  lower-tier withholding on their franchise or income tax return (Form 5S or 3) instead of 
  Form PW-1. 

                                       5 
 

            2024 Wisconsin Form PW-1 Instructions 

 •  You have tax withheld on your behalf by Form WT-11 filers that was not claimed on your 
   Wisconsin franchise or income tax return (Form 5S or Form 3). 
   Note: Pass-through entities that make an election to pay tax at the entity level can claim 
   tax withheld on their behalf by Form WT-11 filers on their franchise or income tax return 
   (Form 5S or 3) instead of Form PW-1. 
 
If you make this election and report any amount of withholding to any of your shareholders or 
partners on Wisconsin Schedule 5K-1 or 3K-1, you are required to file Form PW-1. The total 
withholding on your Schedules 5K-1 or 3K-1 must equal the withholding on line 1 of Form PW-1. 
 
Item C. Total Pass-Through Income Under Wisconsin Law. Enter the total amount of taxable 
income under Wisconsin law that will pass through the entity, computed as follows: 
 
 • Step 1. Compute the net income that the pass-through entity derives from all income 
   sources  that  are  part  of  its  unitary  business  activities.  In  this  computation,  include  all 
   separately stated items of income, expense, gain, and loss. 
   Special instructions for tax-option (S) corporations: Do not include interest income taxed 
   at the corporate level. 
   Special instructions for partnerships, estates, and trusts: Do not subtract income that is 
   sourced  outside  of  Wisconsin  for  nonresidents  that  are  individuals,  estates,  or  trusts. 
   Examples of income sourced outside of Wisconsin for nonresident individuals, estates, 
   and trusts are gains and losses resulting from sales of stocks, bonds, or other intangibles, 
   and, in general, interest and dividends. This non-Wisconsin income may be subtracted at 
   the partner’s or beneficiary’s level in Part 2, column E. 
 • Step  2.  For partnerships  only:  Subtract  guaranteed  payments  made  to  partners. 
   Guaranteed payments sourced to Wisconsin must be added at the partner’s level in Part 
   2, column E. 
 • Step 3. For multistate entities only: Multiply the amount computed through steps 1 and 2 
   by the Wisconsin apportionment percentage computed at the pass-through entity level. 
   This is the percentage reported on the pass-through entity’s Schedule A-01, A-02, A-03, 
   A-04, A-05, A-06, A-07, A-08, A-09, A-10, or A-11. Add any nonapportionable income 
   sourced to Wisconsin to the result. 
 
Item D. Amount Included in Item C that Was Taxed by a Lower-Tier Entity. If you received 
income  or  loss  from  a  lower-tier  entity  that  elected  to  pay  tax  at  the  entity  level  under  sec. 
71.365(4m)(a) or 71.21(6)(a), Wis. Stats., enter the amount of income or loss from the lower-tier 
entity that is included in Item C. 
 
After completing Part 1 through Item E, complete Part 2. 
 
Instructions for Part 2 
 
Form  PW-1  is  only  used  to  report  pass-through  withholding.  Do  not  include  other  types  of 
withholding received (i.e., withholding from Form 1099-R and Form W2-G). 
 
Column  A:  Nonresident’s  Name  and  Address. Enter  each  nonresident  owner’s  name  and 
address as it will appear on the Schedule 5K-1, 3K-1, or 2K-1. 
 
                                        6 
 

               2024 Wisconsin Form PW-1 Instructions 

Column  B:  Nonresident’s  FEIN  or  SSN.  Enter  each  nonresident’s  federal  employer 
identification number or, for nonresident individuals, the social security number. For an estate, 
enter both  the  federal  employer  identification  number  (if  applicable)  and  the  social  security 
number of the decedent. 
 
Column C: Tax Form. Select the code for the tax form the nonresident will use to file their income 
or franchise tax return. From the list below, enter the tax form code that corresponds with the type 
of taxpayer the nonresident is: 
 
                          Type of Taxpayer                Tax Form Code 
              Individual not included in composite return 1NPR 
              Individual shareholder in composite return  1CNS 
              Individual partner in composite return      1CNP 
              Estate or trust – nonexempt                 2 
              Trust – exempt                              4T (T) 
              Partnership                                 3 
              Tax-option (S) corporation                  5S 
              C corporation – nonexempt, non combined     4 
              C corporation – exempt                      4T (C) 
              C corporation – nonexempt, combined         6 
 
Note: It is important to ensure the correct form type is used for each partner or shareholder.  The 
department may deny the withholding if we cannot verify that the correct entity is claiming the 
withholding. Some common issues are as follows: 
 
 1.  If income is being passed to a grantor trust that does not have its own FEIN and does not 
      file returns, enter 1NPR, 1CNS, or 1CNP, as appropriate, not Form 2.  
 2.  If income is being passed to a single member LLC that is a disregarded entity, enter 1NPR, 
      1CNS, or 1CNP, as appropriate, not Form 3. 
 3.  If you are filing a composite return, discuss with your partners or shareholders whether 
      they qualify to be included on the composite return and whether they plan to file their own 
      Form 1NPR. If they do not qualify to be included on the composite return or if they plan to 
      file their own 1NPR, select Form 1NPR and do not include them on the composite return. 
      If Form 1CNS or 1CNP is selected, withholding may be denied on Form 1NPR and vice 
      versa.  
 
Column D: Affidavit Filed. Indicate whether the nonresident has elected out of withholding by 
properly filing an affidavit (Form PW-2) with the department or has received a Continuous PW-2 
Exemption letter from the department. Do not check “Yes” unless you have obtained a copy of 
the  exemption  letter  issued  to  the  taxpayer.  You  must  maintain  the  copy  in  your  records  to 
substantiate  the  withholding  exemption.  If  you check  “Yes”  in  column D,  you  do  not  need  to 
complete columns E through H for that nonresident. 
 
Column E: Share of Wisconsin Taxable Income.      Enter the total amount of Wisconsin taxable 
income,  including  all  separately  stated  income,  expenses,  gains,  and  losses,  as  well  as 
guaranteed payments that is allocable to each nonresident. For each type of entity filing Form 
PW-1, this amount is computed as explained below. 

                                          7 
 

             2024 Wisconsin Form PW-1 Instructions 

Note: For nonresidents who are individuals, estates, and trusts, you may subtract 30% of the 
nonresident’s  portion  of  Wisconsin-sourced,  long-term  capital  gains  otherwise  reportable  in 
column  E. On farm  assets  held more than  one  year  and  on  all  farm  assets  acquired from  a 
decedent, the capital gain exclusion remains at 60% of the capital gain as computed under the 
Internal Revenue Code, not including amounts treated as ordinary income for federal income tax 
purposes because of the recapture of depreciation or any other reason. All other limitations that 
apply to individuals, estates, and trusts also apply when computing the share of Wisconsin taxable 
income. Examples include the $3,000 capital loss limitation and the passive activity loss limitation. 
 
Column E for Tax-Option (S) Corporations. Except as provided below, the amount in column 
E for each nonresident shareholder will be the amount you entered in Part 1, Item E, multiplied 
by the nonresident’s ownership percentage. 
 
Exception:  For  each  nonresident  shareholder  who  files  on  a  composite  return  (Form  1CNS), 
remove any itemized deductions (i.e. charitable contributions) from the amount entered in Part 1, 
Item E, before multiplying by the nonresident's ownership percentage. 
 
Column  E  for  Partnerships. Except  as  provided  below,  the  amount  in  column  E  for  each 
nonresident partner or member will be the amount you entered in Part 1, Item E, multiplied by the 
nonresident’s  profit/loss  sharing  percentage,  plus  any  guaranteed  payments  made  to  the 
nonresident  (after  applying  the  Wisconsin  apportionment  percentage  to  those  guaranteed 
payments). 
 
Exception 1: For nonresident partners or members who are individuals, estates, and trusts, the 
amount in column E will be the amount you entered in Part 1, Item E, times the nonresident’s 
profit/loss sharing percentage (except as described in Exception 2 below), minus the nonresident 
partner’s or member’s share of intangible income sourced outside of Wisconsin (after applying 
the Wisconsin apportionment percentage to that intangible income), plus guaranteed payments 
made to the nonresident (after applying the amount allocated to Wisconsin).  
 
For each nonresident partner who files on a composite return (Form 1CNP), remove any itemized 
deductions  (i.e.  charitable  contributions)  from  the  amount  entered  in  Part  1,  Item  E,  before 
multiplying by the nonresident's profit/loss sharing percentage. 
 
Exception 2: If the stated profit/loss sharing percentage is not representative of the actual income 
from the partnership allocable to the nonresident partner or member (for example, if the partner’s 
share includes IRC sec. 704(c) allocations), enter the total income from the partnership that will 
be included in the nonresident’s income or franchise tax return. 
 
Column E for Estates and Trusts. The amount in column E for each nonresident beneficiary will 
be the amount you entered in Part 1, Item E, times the nonresident’s percentage share of income, 
minus the  nonresident  beneficiary’s share  of  intangible  income  sourced  outside  of  Wisconsin 
(after applying the Wisconsin apportionment percentage to that intangible income). 
 
Column F: Gross Withholding. Multiply the amount in column E by the appropriate withholding 
rate, and enter the result in column F. The rate corresponding to each tax form type (as entered 
in column C) is shown in the following table: 
 
                                              8 
 

                2024 Wisconsin Form PW-1 Instructions 

                                      Tax Form  Withholding 
                                       Code      Rate 
                                     1CNP        7.65% 
                                     1CNS        7.65% 
                                     1NPR        7.65% 
                                     2           7.65% 
                                     3           7.9% 
                                     4           7.9% 
                                     4T (C)      7.9% 
                                     4T (T)      7.65% 
                                     5S          7.9% 
                                     6           7.9% 
 
Column G: Share of Tax Credits.        This is the amount by which the withholding computed in 
column F may be reduced because of income or franchise tax credits that pass through the entity 
filing Form PW-1. Enter in column G the nonresident’s share of any tax credits that pass through 
to the nonresident, as will be reported on the nonresident’s Schedule 5K-1, 3K-1, or 2K-1. Do not 
include any withholding in column G. 
 
Caution: Do not reduce the withholding by any tax credits allocable to nonresidents who file on 
a Form 1CNS or 1CNP. Tax credits cannot be claimed by nonresidents who file on a composite 
return. 
 
You  generally  cannot  claim  carryforwards  of  a  nonresident’s  unused  prior  year  tax  credits  in 
column G,  but  tax-option  (S)  corporations may enter  carryforwards  of  unused manufacturer’s 
sales tax credit, subject to the limitations described in the instructions for Schedule MS. 
 
Column H: Withholding Tax Computed.         Subtract the total of column G from column F. If the 
result is less than zero, enter zero. 
 
Caution:  The  amount  of  withholding  tax  you  enter  in  column  H  must  equal  the  amount  of 
withholding that will pass through to the shareholder, partner, or beneficiary on Schedule 5K-1, 
3K-1, or 2K-1. 
 
Line 15: Total Withholding This Page. Add the amounts in column H on each page of Part 2. 
 
Line 16: Additional Pages Included. Enter the number of additional pages included, if any, and 
the total from line 15 of each subsequent page. 
 
Line 17: Total Withholding Tax Computed. Add lines 15 and 16. Enter total on Part 1, line 1. If 
you needed additional pages for Part 2, complete line 17 on the first page only. 
 
Instructions for Part 1, Lines 1 Through 13 
 
Line 1: Total Withholding Tax Computed. Enter total withholding tax computed from Part 2, line 
17. 
 
Line 2: Estimated Quarterly Withholding Tax Payments. Enter estimated tax payments made 
by the pass-through entity, including My Tax Account payments, minus any “quick refund” applied 

                                               9 
 

                2024 Wisconsin Form PW-1 Instructions 

for  on  Form  4466W, Corporation  or  Pass-Through  Entity  Application  for  Quick  Refund  of 
Overpayment of Estimated Tax. 
 
A  pass-through  entity  must  have  made  estimated  withholding  tax  payments  if  the  total  of  its 
withholding tax for its taxable year beginning in 2024 is $500 or more. Required installments are 
based on the smaller of (1) 90% of 2024 Wisconsin net tax, (2) 100% of 2023 Wisconsin net tax, 
provided the 2023 return covered an entire 12-month period, or (3) 90% of the 2024 Wisconsin 
net tax figured by annualizing income. 
 
Line 3: Tax Withheld by Lower-Tier Entities. This line applies to pass-through entities which 
are members of other pass-through entities. If an upper-tier pass-through entity not commercially 
domiciled in Wisconsin derives Wisconsin income from a lower-tier pass-through entity, the lower-
tier entity is required to withhold on all Wisconsin income allocable to the upper-tier entity. 
 
Note: Form PW-1 is used to compute the entity's pass-through withholding tax liability for the 
year. The computation includes withholding received from lower-tier entities or from Form WT-11 
payments  made  on  the  entity's  behalf.  Do  not  enter  other  types  of  withholding  received  (i.e. 
withholding from Form 1099-R or Form W2-G). 
 
On line 3, the upper-tier pass-through entity enters the total amount of withholding tax already 
withheld on its behalf by the lower-tier pass-through entities. However, the upper-tier entity must 
reduce  the  amount  of  withholding  from  lower-tier  entities  by  the  amount  of  pass-through 
withholding the upper-tier entity used on its franchise or income tax return (Form 5S, Form 3, or 
Form 2). 
 
If you enter tax withheld on your behalf on line 3, you must complete Part 1A to identify the lower-
tier entities. 
 
Line 4: Tax Withheld by WT-11 Filers. Nonresident entertainers are generally required to file a 
surety bond or cash deposit with the department equal to 6% of the contract price at least seven 
days prior to a performance in Wisconsin if the total contract price for the performance exceeds 
$7,000. Use Form WT-11 to file the bond or cash deposit. 
 
An employer is required to withhold from a nonresident entertainer’s payment if the entertainer 
meets  this  requirement  but  does  not  file  a  sufficient  surety  bond  or  cash  deposit  with  the 
department. 
 
A pass-through entity may elect to allocate to its nonresident owners amounts it has deposited or 
had  withheld  by  an  employer,  but  only  to  the  extent  the  income  subject  to  the  deposit  or 
withholding is allocated to those owners. Enter the amount of withholding from Forms WT-11, line 
4, that you wish to allocate to nonresident owners. 
 
You must include a copy of Form WT-11 with your Form PW-1 to substantiate the withholding 
claimed on line 4. 
 
Line 5: Amended Return Only - Amount Previously Paid. If you have already filed a Form PW-
1 for the taxable year and are filing an amended Form PW-1, you must check the space provided 
at the top of the form and include Schedule AR detailing the changes. 
 
Fill in the amount of tax you paid with your original Form PW-1 plus any additional amounts paid 
after it was filed. If you did not pay the full amount shown your original Form PW-1, fill in only the 

                                       10 
 

            2024 Wisconsin Form PW-1 Instructions 

portion that you actually paid. Also, include any additional tax that may have resulted if your 
original return was changed or audited. This includes additional tax paid with a previously filed 
2024 amended return and additional tax paid as a result of a department adjustment to your 
return. Do not include payments of interest or penalties. 
 
Line 7: Amended Return Only - Amount Previously Refunded. Complete this line only if this 
is an amended 2024 Form PW-1. Fill in the refund from your original 2024 return (not including 
the amount applied to your 2025 estimated withholding tax). 
 
If your refund was reduced because you owed underpayment interest or any penalties, fill in the 
amount of your refund before the reduction for underpayment interest or penalty. If your 2024 
return was adjusted by the department, fill in the refund shown on the adjustment notice you 
received. 
 
Line 9: Underpayment Interest Due. See Form PW-U and the related instructions to determine 
if you owe underpayment interest. Enter underpayment interest due, if any, from Form PW-U, line 
17, on Form PW-1, line 9.  If an exception code applies to you, fill in the appropriate code in the 
brackets to the left of Form PW-1, line 9.  See the Form PW-U and the related instructions for 
more information. 
 
Line 10: Other Interest and Penalty Due. Enter any interest, penalty, and late fee due from 
Form PW-U, line 26. Interest, penalties, and fees apply if the pass-through entity files Form PW-
1  later  than  the  unextended  due  date  of  its  income  or  franchise  tax  return  or  files  after  the 
extended due date. 
 
A $50 late filing fee applies for returns filed after the extension date. 
 
Line 11: Amount Due. If the total of lines 1, 9, and 10 is greater than line 8, subtract line 8 from 
the total of lines 1, 9, and 10 and enter the amount. Make your payment electronically through My 
Tax Account, the department's online account management system. 
 
Line 12: Overpayment. If line 8 is greater than the total of lines 1, 9, and 10, subtract the total of 
lines 1, 9 and 10 from line 8 and enter the amount of overpayment. 
 
Line 13: Amount Credited to 2025 Estimated Withholding Taxes.             Enter the amount of any 
overpayment  from  line  12  that  is  to  be  credited  to  the  pass-through  entity’s  2025  estimated 
withholding tax. The balance of any overpayment will be refunded. An overpayment shown on a 
pass-through  entity’s  final  return  will  be  refunded  to  the  pass-through  entity  that  made  the 
payments. 
 
Instructions for Part 1A (Additional Information Required for Tiered Entities) 
 
If the pass-through entity is claiming credit on line 3 for tax withheld by one or more lower-tier 
entities, enter the name and FEIN of each lower-tier entity and the total amount withheld on your 
behalf by each lower-tier entity. Attach additional pages if necessary. 
 
Instructions for Signatures and Information Reporting 
 
Third Party Designee. If you want to allow a tax preparer, tax preparation firm, or any other 
person you choose to discuss your 2024 tax return with the department, check “Yes” in the “Third 
Party Designee” area of your return. Also, fill in the designee’s name, phone number, and any 

                                         11 
 

       2024 Wisconsin Form PW-1 Instructions 

five digits the designee chooses as their personal identification number (PIN). If you check “Yes,” 
you are authorizing the department to discuss with the designee any questions that may arise 
during the processing of your return. You are also authorizing the designee to: 
 
 •  Give the department any information missing from your return, 
 •  Call the department for information about the processing of your return or the status of 
      your refund or payment(s), and 
 •  Respond to certain department notices about math errors, offsets, and return preparation. 
 
Signature and Date.   Sign and date the form. When you are filing this form electronically, the 
signature you click with the mouse has the same validity as a handwritten signature. If the person 
preparing Form PW-1 is not the taxpayer, the preparer may electronically sign the form on behalf 
of the taxpayer only if the preparer obtains a signed statement from the taxpayer authorizing the 
electronic signature. 
 
Notifying Nonresidents of the Amount Withheld. After you have completed Form PW-1, you 
must notify the pass-through entity’s nonresident owners of the amount you withheld on their 
behalf. Enter each owner’s share of the amount withheld on Schedule 5K-1, 3K-1, or 2K-1, on the 
line designated “Wisconsin tax withheld.” 
 
For Further Assistance 
 
Common Questions 
 
The department's website has a link to common questions on a number of topics, including pass-
through entity withholding. Click the link for “Common questions” then click on the “Businesses” 
link. 
 
Here is a direct link to the pass-through entity withholding common questions. 
 
                                          12 
 

              2024 Wisconsin Form PW-1 Instructions 

Additional Assistance 
 
If you are unable to find the answers to your questions in these instructions or in the frequently 
asked questions, you may contact the department. For the best possible service, choose the 
appropriate contact carefully from the table below. 
 
   For Questions Regarding                          Appropriate Contacts 
 •  Getting started with Online E-Filing • E-mail: DORAuditPassThrough@wisconsin.gov  
 •  Computation of withholding           • Phone (608) 261-6261 
 •  Information to be entered into        (Telephone help is also available using TTY equipment. 
   Form PW-1                              Call the Wisconsin Telecommunications Relay System at 
                                          711 or, if no answer, (800) 947-3529. These numbers are 
 •  Electronic payment options and        to be used only when calling with TTY equipment.) 
   waivers 
                                         • Write: Customer Service Bureau, Mail Stop 5-77 
 •  Name and address changes                        Wisconsin Department of Revenue  
                                                    PO Box 8949  
                                                    Madison, WI 53708-8949 
 •  Problems encountered while using     • Email: DORElectronicFiling@wisconsin.gov  
   Online E-Filing 
 •  Creating an XML file for E-File 
   Transmission 
 
                               Applicable Laws and Rules 
   
  This document provides statements or interpretations of the following laws and regulations 
  enacted as of June 22, 2024: sec. 71.775, Wis. Stats., and secs. Tax 2.04 and Tax 3.02, 
  Wis. Adm. Code. 

                                            13